What is Section 138 NI Act?
What is Section 138 NI Act?
i) An offence under Section 138 of the Negotiable Instruments Act, 1881 is committed no sooner a cheque drawn by accused on an account being maintained by him in a bank for discharge of debt/liability is returned unpaid for insufficiency of funds or for the reason that the amount exceeds the arrangement made with the …
How do I deal with section 138?
If the cheque issuer fails to make a fresh payment within 30 days of receiving the notice, the payee has the right to file a criminal complaint under Section 138 of the Negotiable Instruments Act. However, the complaint should be registered in a magistrate’s court within a month of the expiry of the notice period.
What are the four types of negotiable instruments?
Types of Negotiable Instruments
- Personal checks. Personal checks are signed and authorized by someone who deposited money with the bank and specify the amount required to be paid, as well as the name of the bearer of the check (the recipient).
- Traveler’s checks.
- Money order.
- Promissory notes.
- Certificate of Deposit (CD)
How serious is cheque bounce case?
A cheque bounce is a criminal offence stipulated under Section- 138 of the Negotiable Instruments Act, 1881. However, in case of a cheque bounce, the aggrieved party can file a criminal as well as a civil suit against the accused.
How can we defend yourself in cheque bounce case?
How to defend myself in cheque bounce case
- 146 votes. You have to prove yourself and defend yourself.
- to prove Your guilt, the complanaint must show that money given was pursuance of a debt/business deal.
- U/S 138 YOU CAN PROTECT YOURSELF ONLY IF YOU HAVE PROOF THAT THE CHEQUE IS GIVEN AS SECURITY .
Is cheque a negotiable instrument?
A cheque is a Negotiable Instrument, which can be further negotiated by means of endorsement and is payable on demand. A cheque payable to bearer is negotiable by the delivery thereof, and when it is payable to order is negotiable by the holder by endorsement and delivery thereof.
What is the bail amount for cheque bounce case?
There is no anticipatory bail for offence under cheque dishonor. The offence is a bailable offence. The parameters to be considered is when was the cheque issued, when was it presented in the bank and the burden to prove the transaction lies with the complainant.
What is section 138 of the NI Act?
Section 138 of the NI Act makes a person criminally liable for fine or imprisonment or both to the person who has issued the cheque. The section imposes both criminal and civil liability.
Is cheque bounce an offence under Section 138 of the NI Act?
It is worth understanding here that the procedures being followed while dealing with the offences under Section 138 of the NI Act are procedures enumerated in the code of criminal procedure. Though the legislature has started making attempts to decriminalise the cheque bounce it is still a quasi-criminal offence.
What is section 138 of the Banking Act 1988?
After a century, Chapter XVII, Section 138 to 142 were inserted in the Act vide Section 4 of the Banking, Public Financial Institutions and Negotiable Instruments Laws (Amendment) Act, 1988, (Act 66 of 1988). Section 138 of the Act deals with the punishment for the dishonour of the cheque.
Is the offence under Section 138 person-specific?
In N. Harihara Krishnan v. J. Thomas, the Supreme Court laid down that the offence under Section 138 is person-specific hence cognizance against the person not being accused till now has to be taken in the same manner in which cognizance was first taken against the earlier accused.